For all you folks who might want to be on a UK exchange:
Nasdaq ups LSE to nearly 19%; Euronext bows out By Steve Goldstein, MarketWatch
Last Update: 10:26 AM ET May 3, 2006
LONDON (MarketWatch) -- The race for the London Stock Exchange ownership narrowed on Wednesday after the Nasdaq Stock Market increased its stake in the U.K. exchange and Euronext N.V. gave up entirely on the prospect of merging with its partner across the English Channel.
Nasdaq (NDAQ) said it bought another $291 million worth of shares to bring its London Stock Exchange (LSE) stake to nearly 19%, up from the 15% it secured in April.
LSE shares turned 1.5% higher, to 12.36 pounds a share, in afternoon London trading, following the announcement.
Nasdaq, which already was the largest LSE shareholder prior to Wednesday's move, said it paid 12.18 pounds a share for the additional stake.
The Nasdaq edged up slightly in early New York trade.
Though the Nasdaq is in pole position to acquire the LSE, it's barred by U.K. takeover rules from making a full bid for the LSE until the end of September, unless a rival makes a competing bid first.
The Nasdaq's increased stake came on the same day as Euronext (005777) pulled out of the running to buy the LSE, specifically citing the Nasdaq's stake purchase.
The Euronext had never been seen as a front-runner to buy the U.K. stock exchange, with American rivals the Nasdaq and the NYSE Group (NYX) seen as most likely to capture the London crown.
Euronext, which operates stock exchanges in Paris, Amsterdam, Brussels and Lisbon and a futures market in London, is more likely to combine with the Deutsche Boerse (581005) .
On Wednesday, Euronext said a merger with its German rival is a "serious option."
But the Euronext also didn't want to commit itself to a Deutsche Boerse deal, and said it's in talks with unnamed "other parties."
The NYSE has reportedly held talks with the Euronext, as has the Chicago Mercantile Exchange (CME) .
The Borsa Italiana, which is preparing for an initial public offering, also has signaled readiness to partner with a European exchange.
Deutsche Boerse hasn't been as coy with its interest in Euronext, as the operator of the Frankfurt bourse and the majority owner of the Eurex futures exchange recently said a merger with Euronext is the "best possible approach" for European exchange consolidation.
Still, the European exchanges have their differences, notably over clearing arrangements, as well as in which capital a merged firm would be headquartered.
Euronext rose 1.9%, while the Deutsche Boerse slipped 0.6%
Trout
